A Chattogram restaurant owners’ group has threatened to indefinitely suspend foodpanda orders unless commissions and other charges are capped at 15 per cent.
The delivery platform, on the other hand, said the campaign represents only a fraction of its partner restaurants in the city and alleged some owners had been intimidated and pressured to join.
The Chattogram Metropolitan branch of the Bangladesh Restaurant Owners Association said at a press conference on Saturday that foodpanda typically charges commissions of 30-35 per cent, alongside deductions for online payments, waiting time, VAT on commissions, tablet and internet services and other fees.
The association said the charges were squeezing restaurant margins, particularly for small and medium-sized businesses, with knock-on effects on employees and their families.
foodpanda disputed the scale of the campaign and claimed that people acting under the association’s banner had entered several partner restaurant outlets, pressured them to switch off foodpanda devices and to shift to a competing delivery app.
foodpanda Bangladesh Head of Public Affairs and Public Relations Zahedul Islam told TIMES the company had obtained evidence of threats and intimidation linked to the campaign.
He said such practices, apart from being illegal, undermined fair competition, business autonomy and restaurant owners’ freedom to make independent commercial decisions.
“We firmly believe every restaurant has the right to make its own decisions, including choosing its delivery partners and business relationships, without pressure or intimidation,” he said.
Islam said forcing restaurants to stop using one platform and adopt another would amount to anti-competitive conduct, and restaurants that wished to continue working with foodpanda should be free to do so.
The dispute centres on commissions, deductions, penalties and payment timing.
The association said foodpanda’s monthly invoices were complicated and unclear, making deductions difficult to verify or challenge. It wants itemised invoices showing every charge.
It also alleged that restaurants bear losses when orders are cancelled because of foodpanda’s technical problems or delivery-management issues after meals have already been prepared, and demanded full compensation where restaurants are not at fault.
The company said it bears 40 per cent of the restaurant costs for order cancellations on top of the entire delivery- and marketing-related costs.
The association objected to penalties described as Average Wait Time Fine, or AWGF, saying restaurants should not be charged when riders arrive late or delay collecting food.
Citing experience in 70 countries, the company said it helps ensure service delivery.
The association also alleged that money is sometimes deducted over customer complaints without adequate verification or an opportunity for restaurants to respond, and said no penalty or deduction should be imposed over circumstances beyond restaurant control without hearing both sides.
foodpanda, in response, said it is part of the company’s global standard operating procedure based on which around 15 million orders are being delivered globally.
Payment delays are another point of contention.
The association said proceeds from sales through foodpanda often take 13 days or longer to reach restaurants, creating working-capital pressure as operators must continue paying wages, rent, electricity bills and suppliers. It wants settlement within seven days.
The company claimed that it follows a weekly payment cycle already.
The group cited domestic delivery platform Foodi, which it said operates with a 15 per cent commission, and questioned why foodpanda imposes higher rates alongside additional charges beyond its commission.
Additional amounts, including the value-added tax, are part of business compliances, foodpanda argued.
foodpanda said its commercial relationships are governed by individual contracts with restaurant partners and that it does not negotiate commercial terms through third-party associations.
“Contracts with restaurant partners are mutually agreed and underpinned by bilateral trust — which is a critical ingredient for a successful partnership,” it said.
The company said restaurants can raise disputes directly through dedicated account managers and other regular communication channels.
It also said the association had not submitted a formal letter setting out its complaints or demands, limiting the basis for formal negotiations with the group.
The association said it was not opposed to technology-driven business models but wanted fairness, transparency and cooperation.
It called for intervention by the Directorate of National Consumer Rights Protection, Bangladesh Competition Commission and Ministry of Commerce to ensure transparency and fair competition in the online food-delivery market.
If its demands are not met, the association said participating restaurants would suspend foodpanda orders indefinitely across Chattogram and could pursue legal remedies.
foodpanda said it was engaging directly with individual restaurant partners in Chattogram to resolve concerns and strengthen trust.
The company warned that service suspensions would hurt restaurant sales, reduce rider earnings and leave customers with fewer food choices.
It also said it could seek legal recourse over alleged intimidation and attempts to force restaurants off its platform.
The dispute now turns on two competing positions – the association says restaurants are being squeezed by high commissions, additional charges, penalties and slow payments.
foodpanda says its contracts are negotiated individually and that a limited group under the association banner should not pressure other restaurant partners to abandon the platform.
